Delinquent Tax Collection Plan Causes Division In City Council
PHILADELPHIA (CBS) -- Philadelphia City Councilman Allan Domb introduced his long-awaited proposal to collect delinquent taxes through a controversial method called "securitization" on Thursday.
Three of his colleagues promptly introduced their own bill, exempting their districts from the program. The proposal is likely to generate a lot of discussion before it gets to the full council for a vote.
Securitization turns the debt delinquent taxpayers owe the city into cash through a bond sale. The investors who buy the debt then collect it.
That worries City Council President Darrell Clarke.
"We are clearly concerned about tax foreclosures so we've embarked on a series of programs to make sure people don't lose their homes, but now to have a discussion about possibly putting those homes that we're trying to save in a tax lien securitization program is somewhat troubling," he said.
Clarke, through Councilwoman Jannie Blackwell, introduced a bill that would exempt three council districts: his, Blackwell's, and Maria Quinones Sanchez's.
"Those particular districts probably have more low income individuals than any other place in the city," Clarke said.
Securitization co-sponsor Mark Squilla says the plan targets speculators and absentee landlords, not low-income homeowners.
"A lot of these delinquent property owners are people that own 10, 15, 20 properties that don't pay taxes on any of them," Squilla explained. "We have to understand, we need people to pay their taxes. We don't want to put anyone out of their home, but we do want to make sure everyone should pay their taxes."
The bill's been referred for committee hearings.
